A business initiative is an intentional decision to carry out a certain set of activities. Strategic planning initiatives are specific plans the result from a company's periodic strategic meetings. In many companies, leaders meet at least once a year for the sole purpose of assessing current strategies and formulating new ones for the foreseeable future. Initiatives almost always have costs related to them.

Research Costs

Strategic initiatives often begin with research. If plans are set to enter a new product or customer market, learning how that market functions is necessary to a successful entry. Some companies allocate internal employees and resources to the research, which is costly. Others hire external research firms to carry out research. Alternatively, you can invest in purchasing a research report for an industry from a leading research firm.

Labor Costs

Human resources directors are typically involved in strategic planning meetings because much of a company's vision involves acquisition and retention of necessary employees. If a company decides to open stores in a new region, it naturally needs to invest in recruiting, hiring and training activities. Even when a company doesn't need additional people, a new initiative may require advanced or different training for employees because of changes in their roles.

Resource Acquisition

Resource acquisition is a common cost factor in implementing strategic initiatives. If a company does plan to expand, for instance, costs could include paying to acquire another business, building or land, and equipment. A retailer may decide to start its own distribution system to eliminate the middle man in its distribution process, enabling it to buy directly from manufacturers. Acquiring the facilities, space and equipment to manage a distribution center are all costly.

New Policies

Company and employee policies stem from strategy and provide a framework in which employees operate. New strategic initiatives may lead to new policies and related costs. A company could actually formulate a plan to cut costs by limiting travel reimbursements for transportation, lodging and meals. The new policy could help reign in expenses. On the contrary, a company implementing a new customer-oriented service policy to ramp up service efforts would likely incur additional costs to hire, train and develop employees, and provide the services customers expect.

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About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.